Under the guidance of
Mr. B. UPENDRA RAO M.B.A (Ph.D)
Asst.professor, Head Dept. of Management Studies

SRI VAISHNAVI COLLEGE OF ENGINEERING

CERTIFICATE This is to certify that the mini Project Report entitled “Capital markets-Growth” submitted in partial fulfillment of the internal programme in MASTER OF BUSINESS ADMINISTRATION Degree of JNTU, Kakinada was carried out by under my guidance and supervision. He has been sincere, dedicated and his conduct throughout the study has been excellent.

Place : HOD Date: Mr. B. UpendrA

Index

SerialParticulars
Page
No.
No.

Capital market

Role of capital market in India

Factors affecting capital market in India

India stock exchange overview

Capital market efficiency

6 Suggestions

CAPITAL MARKETS

Companies and governments can raise long-term funds. It is a market in which money is lent for periods longer than a year. A nation's capital market includes such financial institutions as banks, insurance companies, and stock exchanges that channel long-term investment funds to commercial and industrial borrowers. Unlike the money market, on which lending is ordinarily short term, the capital market typically finances fixed investments like those in buildings and machinery.

Nature and Constituents:

The capital market consists of number of individuals and institutions (including the government) that canalize the supply and demand for long-term capital and claims on capital. The stock exchange, commercial banks, co-operative banks, saving banks, development banks, insurance companies, investment trust or companies, etc., are important constituents of the capital markets.

The capital market, like the money market, has three important

Components, namely the suppliers of loanable funds, the borrowers and the Intermediaries who deal with the leaders on the one hand and the Borrowers on the other.

The demand for capital comes mostly from agriculture, industry, trade The government. The predominant form of industrial organization developed Capital Market becomes a necessary infrastructure for fast industrialization. Capital market not concerned solely with the issue of new claims on capital, But also with dealing in existing claims.

Debt or Bond market

The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities, usually in the form of bonds. As of 2009, the size of the worldwide bond market (total debt outstanding) is an estimated $82.2 trillion [1], of which the size of the outstanding U.S. bond market debt was $31.2 trillion according to BIS (or alternatively $34.3 trillion according to SIFMA).

Nearly all of the $822 billion average daily trading volume in the U.S. bond market takes place between broker-dealers and large institutions in a decentralized, over-the-counter (OTC) market. However, a small number of bonds, primarily corporate, are listed on exchanges.

References to the "bond market" usually refer to the government bond market, because of its size, liquidity, lack of credit risk and, therefore, sensitivity to interest rates. Because of the...

You May Also Find These Documents Helpful

...STOCK MARKET REGULATION IN SPAIN
- Sushreet Pattanayak
Table of Contents
Introduction 3
Function of the CNMV 6
CNMV Structure 7
Council of the CNMV 8
International Activities of CNMV 9
Conclusion 11
Introduction
The Comisión Nacional del Mercado de Valores (CNMV) is the agency in charge of supervising and inspecting the Spanish Stock Markets and the activities of all the participants in those markets. It was created by the Securities Market Law, which instituted in-depth reforms of this segment of the Spanish financial system. Law 37/1998 updated the aforementioned Law and established a regulatory framework that is fully in line with the requirements of the European Union and favour the development of European Stock Markets.[1]
The purpose of the CNMV is to ensure the transparency of the Spanish market and the correct formation of prices in them, and to protect investors. The CNMV promotes the disclosure of any information required to achieve these ends, by any means at its disposal; for this purpose, it uses the latest in computer equipment and constantly monitors the improvements provided by technological progress.
The main beneficiaries of the CNMV's work are Spanish investors, to whom we must assure adequate protection. To this end, the CNMV focus particularly on improving the quality of information disclosure to the market, and...

...INTRODUCTION
A capitalmarket is a market which individuals and institutions trade financial securities. Institutions in the public and private sectors also often sell securities on the capitalmarkets in order to raise funds. Thus, this type of market is composed of both the primary and secondary markets. There are two types of capitalmarket which are Islamic capitalmarket and conventional capitalmarket.
In an Islamic capitalmarket (ICM) market transactions are carried out in ways that do not conflict with the conscience of Muslims and the religion of Islam. Here, there is assertion of religious law so that the market is free from activities prohibited by Islam such as usury (riba), gambling (maisir) and ambiguity (gharar). The ICM is a component of the overall capitalmarket in Malaysia. It plays an important role in generating economic growth for the country. The ICM functions as a parallel market to the conventional capitalmarket, and plays a complementary role to the Islamic banking system in broadening and deepening the Islamic financial markets in Malaysia. Today, various capitalmarket products are available for...

...﻿CapitalMarket in Bangladesh
Capitalmarket is a mechanism to flow fund from the hands of small savers (individuals and institutions) at low costs to those entrepreneurs who do need fund to start business or to business. In the other words, capitalmarket mechanism gives a part ownership of big companies/corporations to small savers like you and me. In simple term, it is a globally accepted scheme to share ownership of economic development with general public. Bangladesh capitalmarket is one of the smallest in Asia but the third largest in the south Asia region. It has two full-fledged automated stock exchanges namely Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and an over-the counter exchange operated by SEC. It also consists of a dedicated regulator, the Securities and Exchange Commission (SEC), since, it implements rules and regulations, monitors their implications to operate and develop the capitalmarket. It consists of Central Depository Bangladesh Limited (CDBL), the only Central Depository in Bangladesh that provides facilities for the settlement of transactions of dematerialized securities in CSE and DSE. Dhaka Stock Exchange was set up on 28th April, 1954 that started formal trading on early 1956.Post–independence government did not promote a capitalmarket during the first...

...SEBI IN CAPITALMARKET ISSUES
CONTENTS
17.0 Aims and Objectives
17.1 Introduction
17.2 Objectives of the SEBI
17.3 Entity of SEBI
17.4 Organisational Grid of the SEBI
17.5 Powers and Functions of SEBI
17.6 Role of SEBI
17.6.1 Promoter’s Contribution
17.6.2 Disclosures
17.6.3 Book Building
17.6.4 Allocation of Shares
17.6.5 Market Intermediaries
17.6.6 Debt Market Segment
17.6.7 Brokers
17.6.8 Suspension of a Broker
17.6.9 Recent Developments
17.7 Critical Review of SEBI
17.8 Let us Sum up
17.9 Lesson-end Activity
17.10 Keywords
17.11 Questions for Discussion
17.12 Suggested Readings
17.0 AIMS AND OBJECTIVES
This lesson is intended to discuss the role of SEBI in regulating the Indian capitalmarket.
After studying this lesson you will be able to:
(i) describe objectives behind instituting SEBI
(ii) know the organisational structure of SEBI
(iii) understand powers and functions of SEBI
(iv) examine the role of SEBI in Indian financial market
17.1 INTRODUCTION
During the late 80, the GOI decided to replace the Controller of Capital Issues Act, by
way of inducting the Securities Exchange Board of India, in order to introduce the
regulatory environment in the Indian capitalmarket, to pave way for the promotion of
congenial and conducive climatic condition for the investing public....

...Reforms of CapitalMarket
The 1991-92 securities scam prompted the governments to increase the pace of reforms in the capitalmarket. Several reform measures have been undertaken since then in both the primary and secondary segments of the equity market.
Primary CapitalMarket
1) The Securities and Exchange Board of India was set up in early 1988 as a non-statutory body under an administrative arrangement. It was given statutory powers in January 1992 through the enactment of the SEBI Act, 1992 for regulating the securities market. The two objectives mandated in the SEBI Act are investor protection and orderly development of the capitalmarket.
2) The Capital Issues (Control) Act, 1947 was repealed in May 1992, allowing issuers of securities to raise capital from the market without requiring the consent of nay authority either for floating an issue or pricing it. Restrictions on right and bonus issues were also removed. The interest rate on debentures was freed. However, the new issue of capital has now been brought under SEBI’s purview and issuers are required to meet the SEBI guidelines for disclosure and investor protection, which are being strengthened from time to time to protect investor interest.
3) The requirement to issue shares at a par value of Rs 10 and Rs 100...

...Capitalmarket OF Bangladesh
1.
Introduction
A capitalmarket is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market). The capitalmarket includes the stock market (equity securities) and the bond market (debt). Financial regulators, such as the Bangladesh Financial Services Authority or the Bangladesh Securities and Exchange Commission (SEC), oversee the capitalmarkets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties.
Capitalmarkets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere.
The Capitalmarket, an important ingredient of the financial system, plays a significant role...

...system can operate on a global, regional or firm specific level. Gurusamy, writing in Financial Services and Systems has described it as comprising "a set of complex and closely interconnected financial institutions, markets, instruments, services, practices, and transactions.
Functions performed by a financial system are :
Saving function: Public saving find their way into the hands of those in production through the financial system. Financial claims are issued in the money and capitalmarkets which promise future income flows. The funds with the producers result in production of goods and services thereby increasing society living standards.
Liquidity function: The financial markets provide the investor with the opportunity to liquidate investments like stocks bonds debentures whenever they need the fund.
Payment function: The financial system offers a very convenient mode for payment of goods and services. Cheque system, credit card system etc are the easiest methods of payments. The cost and time of transactions are drastically reduced.
Risk function: The financial markets provide protection against life, health and income risks. These are accomplished through the sale of life and health insurance and property insurance policies. The financial markets provide immense opportunities for the investor to hedge himself against or reduce the possible risks involved in various...

...“To Analyze perception of investor’s for investing in CapitalMarket especially in Gujarat”
Shah Hardik Assistant Professor, Centre for Management Studies, Dharmsinh Desai University,
NADIAD. – 387 001 Shah_hardik07@yahoo.in
Frince Thomas Assistant Professor, Centre for Management Studies, Dharmsinh Desai University, NADIAD.– 387 001
frince.mba@ddu.ac.in
ABSTRACT: The Indian capitalmarket is an ―emerging stock market‖. This implies that market is in the process of transformation, growing in size and sophistication. The capitalmarket is further of two types: Primary Market. It is also referred to as the new issue market since it deals with new securities. The securities issued in new issue market (NIM) are then traded in secondary market. There are three ways by which securities can be issued in a primary market: - initial public offer, rights issue (for existing companies) and preferential issue. Secondary Market. It is also referred to as the stock market. The level of activities in stock market is measured through stock indices, major ones being BSE SENSEX and NIFTY in India. Moreover, on other hand, Investor is someone who allocates capital with the expectation of a financial return. The types of investments include, ---...